Rises

Huge cuts will also be made in TRANSPORT. Officials have been told by
Transport Secretary Philip Hammond the pain will be spread equally between
road and rail.

But rail fares will be pushed up and Mr Hammond is set to axe a £7.5billion
order for 1,400 train carriages to replace the ageing InterCity Express
fleet.

Big savings will also have to be found in the DEFENCE budget. The MoD
is looking at one option that would see ground troop numbers cut by 20 per
cent, troop formations from 98 to 80, major vessels cut from 57 to 45 and
aircraft numbers from 760 to 550-600.

Billions more will have to be saved from Britain's £213billion-a-year BENEFITS
bill.

Work and Pensions Secretary Iain Duncan Smith is planning a massive
simplification of the entire system.